Quote of the Day

I want to make this clear. I have presented my theoretical scenario, but my scenario is certainly not a guarantee of accuracy. In the end, I go by what the market is doing, and what I believe the market is telling me.

If market facts change, I change. I'm always trying to construct a scenario based on the latest "market language," as I interpret it.

I am sure a year ago many people would not have expected Trump to win the Whitehouse, be named TimeMagazine's “Person of the Year” and for markets to have significantly moved up on the back of it. But this is where we are. In the last week Trump has been trying to make all the right economic moves, and his pragmatic stance might well help bring back some industry to the US. He’s certainly good at the photo opportunities with business people, like Japan’s Masatoshi Son this week. Arthur Laffer, the economist behind the Reagan tax cuts, was in London explaining the tailwinds that Trump’s plans will create.

After days of modest and mostly upward moves, the stock market really took off today. Asian markets started it first, with Chinese and Japanese markets both solidly higher. Europe decided to see the Asians and raise them, with both British and German shares up nearly 2%. But it's all being led by continuing optimism about the combined fiscal stimulus and deregulation the Trump administration is expected to bring.

It turns out that President-elect Donald Trump is a typical politician after all, at least in some respects. That notably includes saying one thing on the campaign trail and then doing something different after he’s in office – or in Trump’s case, even before he takes office. There’s the whole “Lock her up!” thing of throwing Hillary Clinton in jail, now no longer a concern. The “Climate change is a hoax created by the Chinese” claim -- now Trump says he has an open mind on the topic. And Nikki Haley, who formerly was “an embarrassment to the people of South Carolina,” will soon be our next ambassador to the UN. Well again, this flip-flopping is typical politician behavior, and simply evidence that Trump indeed knows how the game is played.

Uh oh! Looks like you have JavaScript disabled. To use all of this site's features you must enable JavaScript! This is just a friendly warning =)

Trial Subscription Sign-up!

Enter your email address below to sign up for a 90-day trial of Dow Theory Letters for only $68!

All information is confidential.

Email address

A Big Thank You

To all our subscribers and partners, we would like to say thank you for your loyal support through the years. We will continue to do everything we can to maximize your experience and enjoyment of our site. If you have any suggestions or would like to provide feedback, please click on the "Contact Us" link to the right.